Is Celsius Network's Alex Mashinsky a bank or a lender?

Celsius Network CEO Alex Mashinsky built his cryptocurrency lender into a giant on a pitch that it was less risky than a bank with better returns for customers. But investor documents show the lender carried far more risk than a traditional bank.

Is Celsius a crypto bank?

The New Jersey company launched in 2018 and quickly became one of the darlings of the crypto community. Celsius marketed itself as a type of crypto bank, encouraging people to deposit their digital currencies with the firm and earning money by borrowing or lending against those funds.

Is Celsius better than a bank?

Celsius CEO Alex Mashinsky built his cryptocurrency lender on a pitch that it was better than a bank.But investor documents show it had far more risk than a traditional lender. … This content was created by one of our content team members. You can pitch a news story — including guest contributor requests — using our story portal.

What is Celsius & how does it work?

Celsius relied on a stream of deposits from retail investors that it lent to large crypto companies and used for risky bets on untested ventures. It promised exceptionally high interest rates while also claiming the risks were small.